MGV

Analysts Predict 10% Gains Ahead For MGV

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Mega Cap Value ETF (Symbol: MGV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $127.59 per unit.

With MGV trading at a recent price near $115.79 per unit, that means that analysts see 10.19% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MGV's underlying holdings with notable upside to their analyst target prices are CVS Health Corporation (Symbol: CVS), Charter Communications Inc (Symbol: CHTR), and Intel Corp (Symbol: INTC). Although CVS has traded at a recent price of $55.90/share, the average analyst target is 39.02% higher at $77.71/share. Similarly, CHTR has 36.27% upside from the recent share price of $265.93 if the average analyst target price of $362.39/share is reached, and analysts on average are expecting INTC to reach a target price of $40.29/share, which is 30.40% above the recent price of $30.90. Below is a twelve month price history chart comparing the stock performance of CVS, CHTR, and INTC:

CVS, CHTR, and INTC Relative Performance Chart

Below is a summary table of the current analyst target prices discussed above:

Name Symbol Recent Price Avg. Analyst 12-Mo. Target % Upside to Target
Vanguard Mega Cap Value ETF MGV $115.79 $127.59 10.19%
CVS Health Corporation CVS $55.90 $77.71 39.02%
Charter Communications Inc CHTR $265.93 $362.39 36.27%
Intel Corp INTC $30.90 $40.29 30.40%

Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.

10 ETFs With Most Upside To Analyst Targets »

Also see:

• ZU Historical Stock Prices
• Generac Holdings MACD
• PBH YTD Return

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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